by Chris Becker
Not the best mid-week result for Asian share markets today as a run to the Yen has seen Japanese stocks fall with only Hong Kong rising on the back of a surge in HSBC and other bank stocks. Other currencies have also risen against USD as the political imbrolio around Trump and his offspring continues to spillover. The safe haven is pushing funds into bonds with US and Aussie 10 year yields dropping a few points.
In mainland China the Shanghai Composite closed down 0.43% after a good start, to be back under previous resistance at 3200 points. The Hong Kong based Hang Seng Index is pushing for another big gain, up 0.6% gain as it brushes past the 26000 point level for a two year plus new high:
Japanese stocks are off because of the stronger Yen, with the Nikkei 225 closing 0.5% lower to be just above 20,000 points, so holding on! The USDJPY pair dropped below rolling ATR support and the daily trendline, but I’m waiting for a follow through below 113.50 or so:
S&P futures are slipping, as the major bourse starts to fall below the midpoint of control at 2430 points:
The ASX200 had a very rough day as well, dropping nearly 1% to 5673 points as the bears sniff a possible rout in banks, breaching below the 200 day moving average for the first time. The next target below is at least 5500.
The meltup in Aussie dollar is slowing down as it sniffed the 77 handle but was sold off on too fast momentum as it briefly breached resistance at the 76.30 level. I’m watching the Aussie closely on the proxy bid if the Loonie goes to the moon tonight:
The data calendar ramps up tonight with Janet Yellen appearing before Congress, then the Canadian central bank has its monthly meeting where they are expected to hike interest rates. For oil watchers, theres also a DOE crude oil inventory report.